May 2025: Market favors buyers as inventory increases

With the price of Oahu real estate somewhat flat over the past three years, market inventory is trending in favor of buyers.

The National Association of Realtors recent housing stats show inventory around the country up for the 19th consecutive month in May, offering buyers more options. Nationally, inventory increased across every major region.

On Oahu, single-family and condo listings are both at three-year highs. Single-family home inventory has increased in 13 of the last 17 months, and condo inventory is up in the last 16 of the last 17 months. For buyers, more listings mean more choices, and with more choices comes better bargaining power. In May 2022, there were 471 homes on the market, compared to 818 last month. Condo inventory is up from 939 condos listed in May 2022, to 2,556 last month. From the standpoint of inventory, it’s a good time to be home shopping.

In 2022, the Months Supply of Active Inventory for single family homes was 1.3 months, meaning at the rate of sales during that timeframe, the current number of listings would last 1.3 months. Condo supply was at 1.5 months. Last month, there was 3.6 months of single-family home inventory, and 7.1 months of condo inventory, giving buyers more options.

Not surprisingly, the number of Days on the Market is also on the rise. Properties took longer to sell last month, which may reflect buyers — with the expanded selection — are taking more time to decide. The Median Days on the Market for both single-family home- and condo- segments were up by 50% and 56% respectively— up 21 days for a single-family home, and 39 days for a condominium.

There were some dramatic and interesting differences in DOM as it correlates to price range. SF homes priced in the $1.5-to-$2 million range, and the $800,000-to-$900,000 range sold quickest, in 8 and 9 days, respectively. Homes priced at $499,999-and-below, took the longest to sell, a median of 70 days. In fact, single-family homes under $700,000 generally took between 62 and 74 days.

The price range where condos sold the fastest — under 30 days — was with those priced between $500,000 and $699,999. Condos priced between $1.5 and $2 million took the longest to sell at a median of 94 days.

Median sales prices for the last three years have remained steady — the median price of a single-family home in May 2022 was $1,153,500, compared to $1,175,000 last month. The MSP of a condo in May 2022 was $516,500, compared to $500,000 last month. Stubbornly high mortgage rates and rising insurance costs underscore the affordability issues buyers are considering, and may be, in part, why selling (and asking prices) have only inched up and down in recent months.

As of early June, the average 30-year fixed-rate mortgage rate was 6.85%, according to Freddie Mac. “Higher borrowing costs and rising fees are prompting more cautious decision-making, especially among condominium buyers who continue to prioritize affordability,” says Mike James, president of Coldwell Banker Realty.

Sales of Single-Family Homes and Condos | May 2025
Source: Honolulu Board of REALTORS^®, compiled from MLS data

Single-family home sales volume fell 5.6% in May, compared to May 2024. The most significant drop was noted in the $800,000-to-$1,099,999 price range, which fell 30.2% from 96 to 67 sales. The largest bump up in closed sales was for the $3 million and up category — up 54.5% from 11 to 17 sales.

Condo sales volume was significantly off, down 21.8%, from 478 units sold in May 2024 to 374 last month. Sales in the $1 million-and-up category declined slightly, from 42 a year ago, to 39 last month.

Median Sales Price of Single-Family Homes and Condos | May 2025
Source: Honolulu Board of REALTORS^®, compiled from MLS data

The median sales price of a single-family home rose 8.3% year-over-year to $1,175,000, while the condo median price saw a modest 1% increase to $500,000.

Prices in general, however, have held over the most recent three years (see chart below). In May 2021, single-family MSP were $978,000. In 2020, SF MSP was $797,000. Pre-pandemic MSP in May 2019 was $770,000.

Condo MSP in 2021 was $457,750, in 2020 was $399,000, and 2019 was $432,500.

MARKET SPOTLIGHT

This month’s spotlight is on the most affordable Oahu neighborhoods. If you’re wondering where single-family homes are selling for under $1 million, and condos are selling for under $500,000, here’s the list. Happy hunting.

For an up-to-date market analysis of your property, contact me today. I am happy to provide you with a current valuation of your home and answer any questions you may have about the market.

Source: Honolulu Board of REALTORS^®, compiled from MLS data